Seeking Alpha

Analysts weigh in on J.C. Penney's sales track

  • Sterne Agee thinks the 2% comp sales mark for J.C. Penney (JCP -5.8%) in Q4 isn't quite high enough. The firm warns a cash infusion might be necessary by J.C. Penney to pay the bills.
  • Goldman Sachs also cautioned on the results, saying that with inventory building up faster than sales "aggressive right-sizing" of the business might occur.
  • Deutsche Bank crunches the numbers to forecast JCP saw same-store sales slide 4% in January. Though weather was a factor, the retailer doesn't have the flexibility to outlive poor traffic months.
Comments (20)
  • wyostocks
    , contributor
    Comments (7620) | Send Message
     
    They should turn out the lights to save money.
    4 Feb, 12:05 PM Reply Like
  • andypochta1
    , contributor
    Comments (1046) | Send Message
     
    Bought few shares just under 5.
    They own most stores, not leasing, they have 1000+ of those.
    They should sell few under-performing stores and keep the lights on :)
    4 Feb, 01:37 PM Reply Like
  • chopchop0
    , contributor
    Comments (3131) | Send Message
     
    "They own most stores, not leasing, they have 1000+ of those. "

     

    Let me know how SHLD has worked out for people investing in it a few years ago based on the "real estate" thesis.
    4 Feb, 02:14 PM Reply Like
  • Bouchart
    , contributor
    Comments (755) | Send Message
     
    Much of JCP's real estate is collateral for loans, if I remember correctly.
    4 Feb, 02:16 PM Reply Like
  • andypochta1
    , contributor
    Comments (1046) | Send Message
     
    So they do have collateral for loans, don't they :)
    chopchop,
    SHLD or JCP, don't you agree we care about next few years not last few years?
    No question it is high risk and not for faint-hearted, that's why you're seeing $5.
    4 Feb, 02:36 PM Reply Like
  • jcpisdead
    , contributor
    Comments (14) | Send Message
     
    GS owns all the stores and all of JCP inventory.
    4 Feb, 05:59 PM Reply Like
  • dweebster
    , contributor
    Comments (308) | Send Message
     
    I recall a time not too long ago when one could by MCD for about the value of the real estate . . .
    4 Feb, 07:27 PM Reply Like
  • CDM Capital
    , contributor
    Comments (428) | Send Message
     
    Anticipate seeing a lot of inventory that will end up at Big Lots, TJ Maxx/Marshalls, & the close out stores for pennies on the dollar. Might be an opportunity for them.
    4 Feb, 12:14 PM Reply Like
  • davidbranagan
    , contributor
    Comments (22) | Send Message
     
    Is a takeover possible at this price?
    4 Feb, 01:43 PM Reply Like
  • Bouchart
    , contributor
    Comments (755) | Send Message
     
    Who would buy JCP? Sears? Retail is in a slump across the board.
    4 Feb, 02:16 PM Reply Like
  • mikemath
    , contributor
    Comments (24) | Send Message
     
    I doubt it. JCP has drained out all its useful value.
    4 Feb, 04:22 PM Reply Like
  • jcpisdead
    , contributor
    Comments (14) | Send Message
     
    Why would this happen? JCP is too much in debt and is owned by GS secured loans.
    4 Feb, 06:02 PM Reply Like
  • Sebanightwish
    , contributor
    Comments (1013) | Send Message
     
    Surely Stern, Goldman and Deutsche, no shares of JCP. otherwise they would have said: Very good number, it's the beginning of the improvement, etc.
    4 Feb, 02:51 PM Reply Like
  • Minutemen
    , contributor
    Comments (712) | Send Message
     
    JCP is dead.

     

    Long TJX.
    4 Feb, 03:50 PM Reply Like
  • TFCAB
    , contributor
    Comments (1942) | Send Message
     
    Does anybody remember WARD's ? the only question for JCP is if it has an aggressive form of cancer or the kind that just nibbles away for years until it reaches vital organs........
    4 Feb, 03:54 PM Reply Like
  • Minutemen
    , contributor
    Comments (712) | Send Message
     
    Monkey Ward's. Of course I remember it (but not fondly).
    4 Feb, 03:58 PM Reply Like
  • dbchun
    , contributor
    Comments (2) | Send Message
     
    I don't think it's likely with the "poison pill" http://seekingalpha.co...
    4 Feb, 04:22 PM Reply Like
  • fliper2058
    , contributor
    Comments (1426) | Send Message
     
    How can you trust a Spin Department at JCP if they constantly treat their stakeholders as fools? Call it....-1% in December, a crappy Christmas.
    4 Feb, 05:23 PM Reply Like
  • Richard0623
    , contributor
    Comments (106) | Send Message
     
    Ackman was wise to get out when he did
    4 Feb, 08:27 PM Reply Like
  • chopchop0
    , contributor
    Comments (3131) | Send Message
     
    He was stupider for getting in and mucking things up in the first place
    5 Feb, 06:04 AM Reply Like
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